Neiman Marcus Agrees to Pay $1.6 Million in Class Action Suit
Posted by: Timothy Weaver on 03/21/2017 02:55 PM [ Comments ]
Neiman Marcus has settled a class action suit in the wake of the 2013 data breach. It has agreed to pay $1.6 million.
The lawyers are the big winners in the case as they are requesting $530,000 (£427,000) in costs while the claimants will each see $100.
The breach revealed the credit card information of 350,000 customers. Plus it took the company 28 days to inform the customers of the breach.
In its defense, the company claimed that the breach had only impacted 9200 of its customers, and victims were reimbursed for their losses.
The suit was dismissed in 2014 on the basis that no physical or financial loss was suffered by the claimants. It was revived in July of 2015.
Standing, or the proof of harm, is what often gets class action suits dismissed. In 2015, a class action suit against eBay was dismissed due to the lack of evidence that the 145 million victims of the breach had suffered from fraud or theft in the wake of the breach.
Barry Goheen of law firm King & Spaulding explained: “Data breach defendants frequently challenge plaintiffs' (claimants) standing in their initial responsive pleading to the complaint.”
Over the last several years, added Goheen, federal courts have dismissed the majority of such cases for “lack of standing”.
Source: SCMagazine
The breach revealed the credit card information of 350,000 customers. Plus it took the company 28 days to inform the customers of the breach.
In its defense, the company claimed that the breach had only impacted 9200 of its customers, and victims were reimbursed for their losses.
The suit was dismissed in 2014 on the basis that no physical or financial loss was suffered by the claimants. It was revived in July of 2015.
Standing, or the proof of harm, is what often gets class action suits dismissed. In 2015, a class action suit against eBay was dismissed due to the lack of evidence that the 145 million victims of the breach had suffered from fraud or theft in the wake of the breach.
Barry Goheen of law firm King & Spaulding explained: “Data breach defendants frequently challenge plaintiffs' (claimants) standing in their initial responsive pleading to the complaint.”
Over the last several years, added Goheen, federal courts have dismissed the majority of such cases for “lack of standing”.
Source: SCMagazine
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